SMPF Revenues Up 4% at P74.4 Billion

November 05, 2014

San Miguel Pure Foods reported today consolidated revenues of Php 74.4 billion for the first nine months of 20014, 4% higher than the same period in 2013. Growth was driven primarily by its Agro, Milling and Dairy businesses.

Operating income grew 18% to P4.3 billion, as favorable selling prices, lower wheat costs and improved availability of key raw materials, resulted in better margins for the Agro, Flour Milling and Dairy businesses, tempering the adverse impact of the Manila port congestion and typhoon Glenda on operations. Net income registered at P2.7 billion while EBITDA was at P6.2 billion.

The Agro and Milling businesses, which make BMEG Feeds, Magnolia chicken, Monterey meats and Baron and King flour, delivered a combined revenue growth of 7% on account of higher volumes and better selling prices. The Company explained that sales volumes of Magnolia chicken would have been much higher had it not been for typhoon Glenda which affected its broiler in the third quarter.

Meanwhile, the branded Value-Added businesses posted a combined revenue growth of 2%. The Processed Meats business took a hit from the port congestion problem which started in the second quarter of the year. The Dairy business, however, continued to deliver a strong performance despite increases in the prices of some raw materials.

The Company is positive that holiday spending would further boost volumes and revenues in the fourth quarter. It expects to breach the P100 billion revenue mark by the end of the year.